Indian automotive component manufacturer announces $12 million investment in China-based joint venture to produce driveline systems for global automotive markets.
20 Jul 2025 | 584 Views | By Angitha Suresh
Sona BLW Precision Forgings Ltd., known as Sona Comstar, announced on July 20, 2025, that its board of directors has approved the formation of a joint venture in China with Jinnaite Machinery Co. Ltd. The partnership will focus on manufacturing and supplying driveline systems and components to automotive original equipment ...
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Sona BLW Precision Forgings Ltd., known as Sona Comstar, announced on July 20, 2025, that its board of directors has approved the formation of a joint venture in China with Jinnaite Machinery Co. Ltd. The partnership will focus on manufacturing and supplying driveline systems and components to automotive original equipment manufacturers in China and internationally.
Under the agreement, Sona Comstar will contribute $12 million and hold 60% equity in the joint venture, while Jinnaite Machinery will contribute $8 million in assets and business operations for a 40% stake. The joint venture is expected to begin operations in the second half of the current financial year.
Jinnaite Machinery operates a foundry facility in Gucheng Development Zone, Hubei Province, utilizing patented technology to manufacture castings and molds. The company serves customers across automotive, off-highway, aviation, railway, and marine sectors, including Chinese automotive manufacturers and North American, European, and Japanese original equipment manufacturers.
The collaboration combines Sona Comstar's expertise in driveline system design, precision forging, and precision machining with Jinnaite Machinery's capabilities in casting and molding. The partnership also leverages Jinnaite's established customer relationships in China, supplier connections, and knowledge of local regulations.
Sona Comstar, listed on both the Bombay Stock Exchange and National Stock Exchange of India, specializes in precision forging and automotive components. The company has been expanding its presence in Asian markets, with particular focus on India, China, Japan, and South Korea.
The board meeting that approved the joint venture was held from 2:00 p.m. to 3:06 p.m. Indian Standard Time on Sunday. The company stated that the joint venture formation is subject to completion of conditions precedent outlined in the binding term sheet agreed upon by both parties.
This announcement represents Sona Comstar's strategy to strengthen its position in the global automotive supply chain through international partnerships and expansion into key manufacturing markets.